Is technology debt bankrupting your competitiveness?

OVERVIEW

Technology debt is more than just the sunk costs of hardware, software and code. It is the inefficiencies, duplicate processes and extra work created by an outdated or out of control technology architecture. Recognizing the full scope of technology debt allows organizations to address it, and, in doing so, tip the balance from maintaining to innovating.

In response to the push and pull of innovation vs. legacy, enterprises try to address their technology debt with a short-term view. This approach is ineffective in managing debt, and may actually add to it. Instead, organizations must take a step back and plan strategically across all technology platforms, processes and people.

RECOMMENDATIONS

To create a strategy for dealing with technology debt, executives must gain a full understanding of it, and of what it is doing to their organization’s ability to innovate and grow. An effective IT strategy should be built around these key steps:

Replace "buy and hold" with "asset light" when it comes to technology investment.

Isolate technology debt and focus on paying it down through a "good debt/bad debt" approach.

Keep moving on the digital front by investing in digital plays or greenfield programs while winding down debt.

Realign ownership for tech debt across the entire C-suite, and rethink the CIO’s role to get everyone vested in the debt vs. innovation decisions.

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